5 Healthcare Stocks Billionaires Are Loading Up On

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Billionaire Investors: 25
Number of Hedge Fund Holders: 116

UnitedHealth Group Incorporated (NYSE:UNH) tops our list of billionaire-owned healthcare stocks. The managed healthcare and insurance company was a part of 25 billionaire portfolios in our database, including those of Rajiv Jain, Ken Griffin, and Andreas Halvorsen, as of Q1 2023.

UnitedHealth Group Incorporated (NYSE:UNH) pays a quarterly dividend of $1.88 per share and has a dividend yield of 1.37%, as of June 7. The company has been growing its dividends consistently for the past 13 years.

At the end of March 2023, 116 hedge funds in Insider Monkey’s database owned positions in UnitedHealth Group Incorporated (NYSE:UNH), compared with 110 in the previous quarter. The stakes owned by these hedge funds have a collective value of over $11.7 billion.

Fred Alger Management mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2023 investor letter. Here is what the firm has to say:

“UnitedHealth Group Incorporated (NYSE:UNH) is an integrated healthcare benefits company uniquely positioned to address rising healthcare costs for its customers, due to its vertical integration, size, and scale. The Optum health benefits services unit, which accounts for approximately 45% of the company’s operating earnings, in our view, has the potential to grow even further as customers look for ways to manage rising healthcare costs. During the period, shares detracted from performance due to several factors: 1) many 2022 healthcare winners with shorter duration profiles and persistent earnings profiles, such as UnitedHealth Group. underperformed in the first quarter of 2023, 2) uncertainty surrounding Medicare Advantage reimbursement levels from the Federal government in 2023, which will be determined later in the year, and 3) increased regulatory scrutiny in the form of potential Medicare Advantage audits across the industry. While these concerns have impacted UnitedHealth in the near-term, we believe company fundamentals remain intact given its large scale business model, competitive advantages, and medium to long- term growth prospects.”

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